Identify the correct statements.

I.Shortening the term of a loan will reduce total interest charges.
II.The interest component of each installment loan payment rises over time.
III.A credit card holder who pays the minimum balance each month will remain in good standing.
A)I and II, only
B)II and III, only
C)I and III, only
D)I, II and III
E)I only

Question

Identify the correct statements.

I.Shortening the term of a loan will reduce total interest charges.
II.The interest component of each installment loan payment rises over time.
III.A credit card holder who pays the minimum balance each month will remain in good standing.
A)I and II, only
B)II and III, only
C)I and III, only
D)I, II and III
E)I only

Quizplus · Accepted Answer

Statement I is true because a shorter loan term means less time for interest to accrue. 
Statement II is false because the interest component of each installment loan payment generally decreases over time as the balance is paid down. 
Statement III is false because paying only the minimum balance on a credit card will result in accumulating interest charges and potentially damaging one's credit standing.

Identify the Correct Statements